Interpretation ID: nht95-7.51

TYPE: INTERPRETATION-NHTSA

DATE: December 8, 1995

FROM: Samuel J. Dubbin -- Chief Counsel, NHTSA

TO: Mr.Peter F. Marthy -- New York State Automobile Dealers

TITLE: NONE

ATTACHMT: 9/19/95 letter from John Womack to David Seagren

TEXT: This is in response to your letter requesting the Chief Counsel of the National Highway Traffic Safety Administration (NHTSA) to explain the proper procedure to be followed in completing an odometer disclosure for a vehicle whose odometer had been previously been replaced and which has a sticker affixed to the inside left door jamb stating the actual mileage at the time the odometer was replaced. Specifically, you ask whether the transferee may enter on the disclosure statement a figure that is the total of the mileage on the new odometer and the mileage shown on the door sticker, and, if so whether the transferor can then certify that figure is the actual mileage the vehicle has traveled.

The reason that it is permissible to certify on the odometer disclosure that the total of the figure on the door sticker and the figure on the current odometer reading represents the actual mileage is that the combination of the sticker and the second odometer contains sufficient information from which the transferor can calculate with precision the total actual mileage on the vehicle. Under 49 U.S.C. @ 32704(a)(2), the door sticker must show the mileage at the time the odometer was replaced; and the transferor can ascertain the reading on the current odometer by visual examination. Of course, if the transferor has knowledge that either figure does not represent actual mileage, he or she may not certify that a total of the two figures is the actual mileage.

We consider this situation to be comparable to that in which a transferor converts an odometer registering kilometers to an odometer that registers miles, because in both situations, the transferor is able to arrive at the correct number of miles the vehicle has actually traveled simply by applying a mathematical formula to the numbers showing on the odometer. In a recent interpretation letter, the agency stated that a dealer which had converted a vehicle's odometer from kilometers to miles, and knew the kilometer reading before the conversion, could certify that the odometer reading in miles represented "actual mileage" because the dealer knew the number of kilometers before the change and could be accurately calculate the number of miles by multiplying that figure by 0.62. I have enclosed a copy of that letter for your information.

In answer to the question of whether or not the transferor should have the odometer replaced before the transfer with an odometer set to reflect the total number of miles on the vehicle, NHTSA believes that in the circumstances you describe, the transferor should replace the odometer with one that reflects the total miles the vehicle has travelled. Replacing the odometer with one that shows all the miles the vehicle has traveled on both odometers has the advantage of reducing the possibility that the transferee in this or subsequent transactions would be misled by the number of miles showing on the odometer, or confused by the difference between that figure and the total shown on the title. This approach does require removal of the door sticker to avoid further confusing a subsequent purchaser. However, it is not illegal to remove such a sticker when there is no intent to defraud. 49 U.S.C. @ 32704(b).

The alternative, which the agency believes is not desirable, would be to leave the present odometer in the car set at its present reding, and leave the sticker on the door jamb. The problem with this option is that the sticker does not provide as durable a record of mileage as the odometer. A sticker can fall off, fade or be removed, creating the potential for confusion when the odometer reading is compared with the information on the title. The same confusion is possible even if the sticker is present, because it might easily be overlooked.

I hope the information in this letter is helpful. If you have further questions concerning interpretation of the Federal odometer law and regulations, you may contact Eileen Leahy, an attorney on my staff, either at the above address or by telephone at (202) 366-5263. Other questions concerning the odometer fraud or the Federal odometer disclosure program may be directed to Mr. Richard Morse, Chief of NHTSA's Odometer Fraud Staff, at (202) 366-4761.

(Letter from Peter Marthy to NHTSA is not available.)